Province to introduce legislation to prevent future governments from using ICBC surpluses as 'ATM'
By Contributor
The Province is poised to introduce legislation that will prevent any B.C. government from directing ICBC to make payments to government from its excess optional insurance capital.
This will ensure that any future surpluses remain with ICBC to be used for the benefit of drivers.
“For many years, the old government treated ICBC like an ATM,” said David Eby, Attorney General. "It raided ICBC’s profits to the tune of $1.2 billion – seriously eroding ICBC’s financial stability and leading to higher premiums. With these proposed changes, in those years when ICBC does make a profit, those funds will now stay within ICBC so they can be used to make auto insurance rates more affordable, and for other ICBC programs and services that benefit drivers.”
Government will propose changes to the Insurance Corporation Act to prevent any future provincial government from using ICBC’s excess optional insurance capital to lower its own borrowing requirements while eroding ICBC’s financial position, as was done in the past.
Between 2009 and 2016, the previous government directed ICBC to make the following payments, totalling almost $1.2 billion, to the Province from ICBC’s excess optional capital: